FTI CONSULTING INC (NYSE:FCN) Q3 2025 Earnings: Profitability Surges Past Estimates

FTI Consulting (NYSE:FCN) has released its financial results for the third quarter of 2025, delivering a performance that notably surpassed analyst expectations on profitability. The company's strategic focus on high-demand advisory services fueled record quarterly results, though the market's initial reaction appears to be measured as investors digest the full scope of the report.

Earnings and Revenue Performance Versus Estimates

The third quarter presented a tale of two metrics for FTI Consulting. While revenue growth was modest, the company's earnings per share demonstrated significant strength, far exceeding what analysts had projected.

• Revenue: $956.2 million, a 3.3% increase year-over-year.
• Revenue vs. Estimate: This figure slightly exceeded the analyst consensus estimate of approximately $954.6 million.
• Earnings Per Share (EPS): $2.60 on a GAAP basis, a 41% increase from the $1.85 reported in the prior year quarter.
• EPS vs. Estimate: The $2.60 EPS substantially outperformed the analyst estimate of $2.01, representing a beat of nearly 30%.

The divergence between solid revenue and explosive EPS growth points to effective margin management. The company achieved a record Adjusted EBITDA of $130.6 million, representing 13.7% of revenues, a significant expansion from 11.1% in the same period last year. This improvement was driven by a combination of higher revenues and lower selling, general and administrative expenses, even in the face of increased variable compensation and interest expenses.

Market Reaction

Following the earnings release, the stock has shown a positive but measured response in pre-market trading, indicating cautious investor optimism. The pre-market performance shows an uptick of approximately 1.96%. This positive movement suggests the market is rewarding the substantial earnings beat and improved profitability. However, the reaction is not overwhelmingly bullish, which may reflect the company's mixed segment performance or a wait-and-see approach ahead of the earnings call for further details on the full-year trajectory.

Updated Full-Year Guidance

Looking forward, FTI Consulting has updated its full-year 2025 guidance, providing a clearer picture of its expectations. The company now anticipates:

• Revenue: Between $3.685 billion and $3.735 billion.
• GAAP EPS: Between $7.62 and $8.12.
• Adjusted EPS: Between $8.20 and $8.70.

This revenue guidance centers around $3.71 billion, which is closely aligned with the analyst consensus estimate of $3.757 billion. The Adjusted EPS guidance, however, sets a strong benchmark, with its midpoint of $8.45 positioning the company for continued robust profitability.

Press Release Summary

The record results were largely propelled by two standout segments, which helped offset headwinds in others. The Corporate Finance & Restructuring segment saw revenues surge 18.6% to $404.9 million, while the Forensic and Litigation Consulting segment grew 15.4% to $194.7 million. These gains were partially tempered by declines in the Economic Consulting and Technology segments, which fell 22.0% and 14.8%, respectively, primarily due to lower demand for certain M&A-related and antitrust services.

CEO Steven H. Gunby commented on the results, stating, “Notwithstanding major headwinds in a couple of our businesses, we delivered, yet again, record revenues and earnings this quarter.” The company also remained active in capital allocation, repurchasing 1.4 million shares of its common stock during the quarter for a total cost of $234.1 million and subsequently authorizing an additional $500 million for buybacks.

For a detailed breakdown of future earnings estimates and historical performance, you can review the earnings and estimates data for FCN.

Disclaimer: This article provides financial news and analysis for informational purposes only and is not intended as investment advice.